Room for Favors in 'Cliff' Deal

Company With Ties to Sen. Reid Saw Its Rival's Medicare Payments Slashed

By

Alicia Mundy

Jan. 28, 2013 7:24 p.m. ET

The New Year's Day legislation that averted tax increases for millions of Americans brought an unwelcome surprise for Elekta AB, a Swedish maker of radiation tools designed to battle brain tumors.

A provision, inserted at the last minute, sharply cut Medicare payments for the company's product while leaving unchanged those of its direct competitor, Varian Medical Systems Inc., of Palo Alto, Calif.